During September,Excom sold 100 radios for $50 each and provided a two-year warranty with each unit.Each radio cost Excom $30 to produce.If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September,for what amount in September would Excom debit Product Warranty Expense?
A)$50
B)$150
C)$30
D)$120

Question

Quizplus · Accepted Answer

The Answer of During September,Excom sold 100 radios for $50 each and provided a two-year warranty with each unit.Each radio cost Excom $30 to produce.If 5% of the goods sold typically need to be replaced over the warranty period and one is actually replaced during September,for what amount in September would Excom debit Product Warranty Expense?
A)$50
B)$150
C)$30
D)$120

During September,Excom Sold 100 Radios for $50 Each and Provided